News Archive: 2007
GENERAL NEWS AFFECTING TAX REPORTING
Sec. 409A Deferred Compensation: Relief to Correct Some Errors (Dec 2007)
Notice 2007-100 provides transition relief and guidance on correcting operational
failures to comply with the new rules affecting income under nonqualified deferred
compensation plans. Included are same-year corrections, and a de minimis limitation.
Notice 2007-89 provides relief for 2007 tax reporting of Sec. 409A deferred income (Oct
2007)
The relief from Sec. 409A deferral reporting, created last year in Notice 2006-100, is
extended for 2007 reporting by this new Notice 2007-89. The relief applies to both
Form 1099 and Form W-2 reporting. Amounts that are includible in 2007 gross income
under Sec 409A are required to be reported, and the Notice provides instructions for
calculating reportable amounts.
P-Cards - New Proposed Regulations, REG-163195-05 issued July 12, 2007
Proposed changes in the way a Qualified Payment Card Agent may provide statements
to cardholders to furnish information about merchants for purposes of tax information
reporting compliance
COURT CASES
Mayo Foundation for Medical Education and Research and Mayo Clinic v US (medical
resident FICA) (Aug 2007)
NON-U.S. PERSONS
REG-114125-07 proposes new income sourcing rule for foreign artists and athletes
If the event is in the U.S., the entire compensation would be U.S. source income, without
allowance for preparation outside of the U.S. (Nov 2007)
Sec. 1248 income attribution - new final Regulations, TD 9345 (July 2007)
Determining earnings and profits from certain nonrecognition transactions of controlled
foreign corporations
PAYROLL AND EMPLOYEE BENEFITS
New Proposed Regulations for Cafeteria Plans (Aug 2007)
These major new regulations will be the subject of a public hearing in November 2007
Withholding Exemptions - Final Regulations, TD 9337 effective July 13, 2007
Rules for so-called "questionable W-4s"
RETIREMENT PLANS AND ACCOUNTS
Revenue Ruling 2007-67 Minimum Survivor Annuity Requirements (Nov 2007)
Issued November 6: Mortality table for single-sum distributions under Sec. 302 of the
Pension Protection Act of 2006; and ruling that the basic rules in regulations under
Code Sec. 417(e) will apply post-PPA.
Sec. 403(b) Plans - new final Regulations, TD 9340 (July 2007)
Comprehensive revised regs for Sec.403(b) tax-sheltered annuity contracts of public
schools and tax-exempt organizations. Generally applicable for taxable years beginning
Jan. 1, 2009, but there are some transition rules.
Notice 2007-62 - IRS intent to issue new Regulations affecting Section 457 Plans (July
2007)
Definitions regarding severance pay plans, and substantial risk of forfeiture
Phased Retirement - Final Regulations, TD 9325 effective May 22, 2007
Permits distributions from a pension plan to a participant on attainment of minimum
retirement age while the participant continues to work for the same employer
GENERAL NEWS AFFECTING TAX REPORTING
Sec. 409A Deferred Compensation: Relief to Correct Some Errors (Dec 2007)
Notice 2007-100 provides transition relief and guidance on correcting operational
failures to comply with the new rules affecting income under nonqualified deferred
compensation plans. Included are same-year corrections, and a de minimis limitation.
Notice 2007-89 provides relief for 2007 tax reporting of Sec. 409A deferred income (Oct
2007)
The relief from Sec. 409A deferral reporting, created last year in Notice 2006-100, is
extended for 2007 reporting by this new Notice 2007-89. The relief applies to both
Form 1099 and Form W-2 reporting. Amounts that are includible in 2007 gross income
under Sec 409A are required to be reported, and the Notice provides instructions for
calculating reportable amounts.
P-Cards - New Proposed Regulations, REG-163195-05 issued July 12, 2007
Proposed changes in the way a Qualified Payment Card Agent may provide statements
to cardholders to furnish information about merchants for purposes of tax information
reporting compliance
COURT CASES
Mayo Foundation for Medical Education and Research and Mayo Clinic v US (medical
resident FICA) (Aug 2007)
NON-U.S. PERSONS
REG-114125-07 proposes new income sourcing rule for foreign artists and athletes
If the event is in the U.S., the entire compensation would be U.S. source income, without
allowance for preparation outside of the U.S. (Nov 2007)
Sec. 1248 income attribution - new final Regulations, TD 9345 (July 2007)
Determining earnings and profits from certain nonrecognition transactions of controlled
foreign corporations
PAYROLL AND EMPLOYEE BENEFITS
New Proposed Regulations for Cafeteria Plans (Aug 2007)
These major new regulations will be the subject of a public hearing in November 2007
Withholding Exemptions - Final Regulations, TD 9337 effective July 13, 2007
Rules for so-called "questionable W-4s"
RETIREMENT PLANS AND ACCOUNTS
Revenue Ruling 2007-67 Minimum Survivor Annuity Requirements (Nov 2007)
Issued November 6: Mortality table for single-sum distributions under Sec. 302 of the
Pension Protection Act of 2006; and ruling that the basic rules in regulations under
Code Sec. 417(e) will apply post-PPA.
Sec. 403(b) Plans - new final Regulations, TD 9340 (July 2007)
Comprehensive revised regs for Sec.403(b) tax-sheltered annuity contracts of public
schools and tax-exempt organizations. Generally applicable for taxable years beginning
Jan. 1, 2009, but there are some transition rules.
Notice 2007-62 - IRS intent to issue new Regulations affecting Section 457 Plans (July
2007)
Definitions regarding severance pay plans, and substantial risk of forfeiture
Phased Retirement - Final Regulations, TD 9325 effective May 22, 2007
Permits distributions from a pension plan to a participant on attainment of minimum
retirement age while the participant continues to work for the same employer
COKALA Tax Information
Reporting Solutions, LLC
Reporting Solutions, LLC
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